New emissions test could see these drivers lose | Tech News

Motorists could lose a major car tax incentive and salary sacrifice benefits if a new emissions check is introduced on vehicles. The EU has introduced a new ‘Euro 6e-bis standard’ check on all new plug-in hybrid electric models. The new test is said to be more sensitive than the current emissions checks and could double or even triple some cars’ CO2 values.  It could push may models over 75g/km of CO2 which means they will no longer be liable for ultra-low salary sacrifice schemes. 

This could see motorists who secure EVs through a work salary sacrifice scheme forced to pay more to use the roads in what could be a hefty blow. Salary sacrifice schemes allow individuals to pay off some of their vehicle’s costs using their pre-tax salary. This can reduce the amount of income tax and National Insurance individuals pay every month. 

The new emissions rule is currently not in place in the UK but the Department for Transport (DfT) is expected to launch a consultation soon.

Harvey Perkins, a tax specialist at HRUX stressed motorists are running the risk of “paying more” for company car tax if the update comes into effect. 

The specialist even admitted that many vehicles may no longer qualify for salary sacrifice benefits if the rule is introduced. 

Harvey told Fleet News: “The implication is that towards the latter end of this calendar year, we will see CO2 values differing on the certificate of conformity from what maybe you expected when you ordered the vehicle. If it goes over 50g/km, then you will move on the tax table, so you will have to pay more company car tax. 

“The big issue is if you go over 75g/km, because if you go over 75 grams, salary sacrifice no longer applies to that vehicle. You can still use it, but you won’t get the national insurance benefits of salary sacrifice.”

Plug-in hybrid models use both an electric motor and an internal combustion petrol and diesel engine. They have become popular as they act as a sort of halfway point between traditional fuelled cars and electric models.

Plug-in vehicles have allowed individuals a chance to secure more expensive models at cheaper rates and has played a major role in helping to drive demand for electric models in the UK.

However, ultra-low emission models are only classified as cars which emit under 75g/km and the stricter test may see models leap over the threshold. 

The Treasury has previously confirmed any updates to emission testing will not impact cars already on the road. Instead, the new rules are only expected to apply to vehicles are registered from January 2026.